Russian company announces discovery of oil reserves in Muthanna Governorate

Russian company announces discovery of oil reserves in Muthanna Governorate

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Shatha Khalil
(LUKOIL), a multinational company founded in 1991 based in Moscow, specializes in the field of energy field ” extraction, production, transportation and sale of oil and gas products” . Lukoil is the second largest oil producer in Russia after Gazprom, the largest non-governmental project in the country in terms of revenue internationally, and one of the largest producers of crude oil in the world, the company has branches in more than 40 countries around the world.

Vagit Alekperov , the head of Lukoil company , one of the most important oil companies operating in Iraq, announced the discovery of new oil reserves in the province of Muthanna (south), one of the poorest provinces in Iraq.
Lukoil began a short period ago drilling new wells in the West Qurna phase 2 oil field in Iraq, and produces about 400 thousand barrels per day. “Alekperov pointed out ” the work of the company and its investment projects in the development of production and exploration in the oil fields and future plans in light of the need of Iraq.

The Prime Minister, Adel Abdul-Mahdi, after meeting with AleKberov stressed on the importance of work and increase investment opportunities and economic development and cooperation with the Russian company to serve Iraq, and that “Iraq is proud of its strategic relations with Russia and in partnership with Lukoil,” pointing to “Iraq’s need to build refineries and provide Oil derivatives and not just exports oil.”
Iraq is rich in oil wealth in the region, as it is the second largest source of crude in OPEC after Saudi Arabia and produces about 4.5 million barrels per day of oil, which exports between 3.2 and 3.5 million barrels per day, the importance of its role in OPEC and its ambitions for development and progress taking its real role in the Arab political arena.
Abdul Mahdi stressed the need for multiple sources of financing the general budget, depending on oil revenues to finance up to 95 percent of expenditures, which makes the economy unilateral and exposes to fluctuations based on the prices of crude in the world markets, and during the meeting , the company indicated to the discovery of new oil reserves in the area “10” in the province of Muthanna (without explaining the size), stressing the readiness of the company to meet the requirements of the Iraqi oil sector, and to provide expertise and training required for Iraqi cadres.

Russian investments in Iraq, Development of trade and economic relations:
As evidenced by mutual visits between the two countries, which focus on the development of economic relations and cooperation between the two countries.
The Russian side stressed:
• The importance of increasing economic, trade and investment links especially in the hydrocarbons sector. There are promising results of Lukoil, Gazprom Oil and Soyuz Oil Gas, and Ross Oil is interested in its projects in Iraq where the total investments in this industry exceeded $ 10 billion.
The program coordinator of the Russian Council for International Affairs, Ruslan Mamedov told “Iraq’s Kommersant that it has many projects related to the reconstruction of the country, especially the areas affected by the terrorist state organization . The greater the number of countries seeking to participate in these projects, the greater the competition and less burden on the Iraqi authorities. Therefore, Iraq is interested in Russian business
• Iraq has an interest in cooperation with Russia, not only the economy, but also political issues, as “Iraq is seriously dependent on the United States and Iran. If Baghdad has other trusted partners, there will be more room for maneuver. ”

Mamedov added that the role of Iraq in the region is changing dramatically, from victim to active and influential player, friendship with it is feasible, it is easy for Moscow to achieve this, since its positions are identical with Baghdad in regional issues.

Economic Studies Unit
Rawabet Center for Research and Strategic Studies